The Most Important Personal Finance Tips For Musicians
Managing finances is a hard task for everyone out there. This is true for every professional who don’t have financial management skills or training. Provided in this page are things that you should learn to ensure that as a musician, you will be able to manage your finances well. It’s important to note that personal financial management is something that can best be achieved when you know the best tips. Thus what you earn in what you do will be managed well to prevent cases where you may clear your bank account. Knowing how to do financial management is a great thing that will enable you live comfortably. Discover more of the tips in this page.
One of the most important tips in personal financial management is the 50/30/20 rule that you should have in mind. These are the numbers that relate to the percentage of how you should always divide the money that comes in. This is to mean that payment from a gig should be divided by using the ratio above to avoid money wastage. The 50% of your pay should take care of your needs that include rent, bills, and food. The 30% represents the money that you will spend on what you want. This will include such things as new musical equipment, event clothes, or video games. The other 20% that has remained should be put away for savings. This is the money that will stay in your account should you have needs that will require you to touch your savings.
Every time you do a performance, you will be paid as a musician. Given that the money comes in day to day depending on when you do shows, you may find it difficult to see the bigger financial picture. Hence you should get to discover more on how to manage your finances well and avoid problems. It’s important that you use a spreadsheet and make your budget well laid down. Such a spreadsheet will bring in a clear picture and help you know more about the money you have to use to pay for bills. This will be useful since gigs often vary in pay.
Musicians always make money depending on the state of the month. Some months come with huge pays and others will be low. You should ensure that you make the best budget that will enable you take care of low pay months by using the high pay months well. When you use this spreadsheet as you will view here, it will be easy to do that. Also, you should always be ahead on expenses every time to help you avoid financial problems. Thus you should always ensure that you can sustain yourself the next month even if you don’t earn much.